Mortgage Rates Rise for 2nd Week; 30-Year at 3.51%

Mortgage Rates Fall for 2nd Week; 30-Year at 3.51%Fixed-rate mortgages increased for a second straight week,  following higher U.S. Treasury bond yields and more positive economic news, said Freddie Mac.
The 30-year fixed rate jumped from 3.41 percent last week to the current 3.51 percent.
Bond yields moved higher on news of stronger consumer spending as advanced retail sales beat the forecast consensus with a 0.1 percent increase. Wall Street expected a decline of 0.3 percent.
Sales were up 0.5 percent for the second time in three months, if excluding such items as automobiles and gasoline.
“Households are also shoring up their balance sheets,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “Total household debt fell by about $110 billion in the first quarter.”
Additionally, about 3 million homeowners were seriously delinquent (90 days or more past due or in foreclosure) on their first mortgages, down from a peak of about 5.1 million in the fourth quarter of 2009.
Here is Freddie Mac’s summary of mortgage rates:
30-year fixed-rate mortgage averaged 3.51 percent, with an average 0.7 point, for the week ending May 16, 2013, up from last week when it averaged 3.42 percent. Last year at this time, the 30-year fixed-rate averaged 3.79 percent.
15-year fixed rate this week averaged 2.69 percent, with an average 0.7 point, up from last week when it averaged 2.61 percent. A year ago at this time, the 15-year fixed-rate averaged 3.04 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.62 percent, with an average 0.5 point, up from last week when it averaged 2.58 percent. A year ago, the 5-year ARM averaged 2.83 percent.
1-year Treasury-indexed ARM averaged 2.55 percent, with an average 0.4 point, up from last week when it averaged 2.53 percent. At this time last year, the 1-year ARM averaged 2.78 percent.
Mortgage Rates Fall for 2nd Week; 30-Year at 3.51%

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